Eni SPA and JSC KazMunayGas (KMG) have agreed to renew Eni’s 50% share of subsoil use rights for exploration and production on Isatay block in the Caspian Sea. The initial agreement was signed 3 years ago (OGJ Online, June 13, 2014).
The new agreement entails the block will be operated by a joint operating company formed by Eni and KMG. The JOC will begin working as soon as the transfer of 50% interest in the license is completed, subject to the approval by Kazakhstan. Eni says the block “is estimated to have significant potential for hydrocarbon resources.”
Eni and KMG subsidiary KazMunayGas EP (KMG EP) also have agreed to expand cooperation in upstream technology and evaluate potential joint developments in new projects. The agreement includes a technical and managerial training program for KMG EP staff.
Eni, KMG, the Ministry of Energy of the Republic of Kazakhstan, and the Kazakh Committee of Geology and Subsoil Use also have signed a memorandum of understanding to evaluate future cooperation in the Kazakh-Russian Pre-Caspian Basin where several oil fields have been discovered. The MOU is part of the energy ministry’s Eurasia project to study the exploration potential of the basin.
Eni in Kazakhstan is joint operator of Karachaganak field and is an equity partner in several projects in the northern Caspian Sea, including the giant Kashagan field (OGJ Online, June 18, 2015).